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Tata Motors today said it has launched new diesel and petrol variants of its hatchback Indica, priced between Rs 2.95 lakh and Rs 3.95 lakh (ex-showroom, Delhi).

The company claimed that the diesel vehicle gives a mileage of 25 km per litre as per Automotive Research Association of India (ARAI) and is the most fuel efficient car in India.

"Tata Motors today launched the Tata Indica eV2, the most fuel efficient car in India with a mileage of 25 kmpl, certified by the ARAI for the CR4 diesel engine," the company said in a statement.

The new car -- eV2 -- comes with a CR4 common rail diesel engine. The petrol option will run on a multi-point fuel injection engine.

"The Tata Indica eV2 is in the range of Rs 3.95 lakh and Rs 4.77 lakh (ex-showroom, Delhi) for the CR4 diesel engine and in the range of Rs 2.95 lakh and Rs 3.58 lakh (ex-showroom Delhi) for the MPFI petrol," the statement said.